This week's Freebie: Determine the single most important metric by which you will be judged this coming year by management/ownership, then align your actions and energy around it.
As hotel marketers, we have dozens of metrics to deal with…. but we humbly suggest there's one that should matter more than any other. The One Metric That Matters (OMTM) is a powerful concept derived from a renowned thought leader in Silicon Valley. But the idea transcends every industry and is especially important for serious-minded hotel marketers.
We fully recognize that the OMTM may be different depending on your property's needs, your career stage or your personal comp plan. It may change as your property evolves and other goals are met… And the OMTM doesn't give you a hall pass to ignore other responsibilities or to stop monitoring other KPIs.
But adhering to OMTM can be a "north star" that guides you to success in the often confusing and complex hotel marketing landscape.
What is your marketing cost by channel?
What is my ratio of direct revenue vs OTAs?
What is my direct website conversion rate?
Is my loyalty program growing?
The OMTM is responsible and necessary for measuring and answering the most burning question in your purview.
The One Metric That Matters will force you to set realistic targets and analyze your results honestly and transparently. Let's say your OMTM is increasing the number of NEW members in your hotel brand loyalty program…you'll need to set a realistic target for the number of new members you hope to gain this year and ensure you have the resources and budget to achieve that target.
According to Patel: "Focus is good. In fact, it's better to run the risk of over-focusing (and missing some secondary metric) than it is to throw metrics at the wall and hope one sticks…" By rallying everyone on the hotel marketing team around the OMTM, there should be no surprises when it's time to review performance vs budget (or employee reviews).
Knowing your OMTM and achieving it are clearly two different things. If your OMTM is relevant and truly meaningful, it will surely take hard work and innovation to achieve it. Inherently, the reason your OMTM exists is because it MATTERS more than any other. And if matters that much, its' not going to be easy to conquer.
In our experience working with some of the most successful hotel marketing firms in the world, we have seen many OMTMs, including:
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Dave Spector is a Partner in Tambourine, a 34-year old marketing technology firm specializing in driving demand, revenue and direct website bookings for tourism and hospitality clients around the world. The firm has offices in Fort Lauderdale, New York City and Bogota. Prior to Tambourine, Dave was chief marketing officer for a global software company, managing an annual marketing budget of $15 million dollars across 17 countries. Earlier in his career, Dave was a founding member of two start-ups that eventually become thriving public companies whose current revenues today exceed $300 million dollars. Dave lives in Delray Beach with his wife and daughter who constantly remind him that he knows very little about anything!
Partner: Tambourine Hotel Marketing